How Much Do Roofing Company Owners Make? Facts & Figures

Roofing company owners make $70000 to $5+ Million, depending on the scale of their business. The roofing industry remains one of the most lucrative sectors in the home services market. With the industry projected to reach nearly $20 billion in 2025, many entrepreneurs are asking about profitability.

Whether you are starting a roofing venture or looking to scale, understanding the financial landscape is essential. We've explained everything from the average roofing business revenue to the specific net profit margins.

Average Roofing Business Revenue and Net Profit

The income for a business owner in this field varies wildly depending on the size of the crew and the local demand. For a new roofing business, the first year is often about establishing a reputation.

A successful roofing business can see a total revenue ranging from $500,000 to over $10 million. However, revenue is a vanity metric; net profit is what matters. A typical roofing contractor can expect a net profit margin between 10% and 20% after all expenses, including roofing materials, labor, and professional liability insurance, are paid.

The Cost Structure of a Standard Roofing Job

You have to break down the roofing job costs to understand how much profit is left at the end of the month. For most residential roofing projects, the homeowner is charged based on "squares" (100 square feet). To stay ahead, you must calculate your cost of goods sold (COGS) accurately.

Typically, roofing materials like a high-quality shingle make up 25 to 30% of the cost. Labor for the roofer crew accounts for another 20 to 25%. This leaves a gross profit that must cover your professional liability insurance, marketing, and equipment maintenance before you see your final net profit.

Understanding the Profit Margin for Roofing Companies

You must master your gross profit and overhead to make your business profitable. The average profit margin for roofing jobs sits around 40% for gross profit. When you subtract the cost of running ads, tools, and equipment (like nail guns and ladders), and office staff, the profit margins tighten.

20% of roofing businesses fail because of poor cash flow. This stems from a deep-rooted misunderstanding about expenditure and profits. A dollar lost here and there can build up to thousands in hidden losses.

You must master the factors that optimize your roofing services and profitability.

Factors Affecting How Much Profit You Keep

Three main factors decide your profit, which include:

• Type of Work: Commercial roofing often has higher contract values but longer sales cycles, while residential roofing offers faster turnover.
• Roofing Materials: The cost of a shingle vs. a metal roof impacts your bottom line. Shingle roofing is common, but specialty types of roofing may offer higher margins.
• Labor Efficiency: Hiring the right people ensures a roofing job is done the first time, helping you avoid costly errors.

What Do Actual Roofing Business Owners Say?

Real-world data from industry forums provides a clear look at what roofing business owners actually take home. While the dream is often sold as easy money, the reality is a mix of high-stakes risk and significant reward.

As one Redditor aptly put it:

"Roofing is very lucrative... doctors, lawyers, roofers. If you know, you know. But it's 100% about the systems. If your crm isn't tight and your crews aren't reliable, you're just buying yourself a stressful 80-hour-a-week job." — User on r/Roofing

Some people have reported great successes, like:

• The "One-Man Band": One entrepreneur on Reddit reported doing $41k in total revenue in their first 3 months as a new roofing business. After labor and materials, they walked away with roughly $12k to $14k in much profit.
  
• The Rapid Scaler: A residential roofing business case study showed a jump from $828k in revenue to $1.38M in revenue within 12 months by focusing on automation, marketing, and a better pricing strategy.
  
• The Reinvestment Perspective: Top-tier roofers recommend saving money and reinvesting in the business. That's how one Redditor explained the success of his roofing business.
  

Common Pitfalls Shared by Owners

We also found countless business owners listing the same common pitfalls. These include problems like:

• The "19% Trap": Some owners report a gross profit of only 19 to 27%, which often leads to a net profit of only 1 to 3% after overhead. Most veterans suggest a minimum 40% gross profit to remain profitable.
• Insurance Delays: Owners often complain about the "supplementing" process with insurance companies, which can delay the final 20 to 30% of a roofing job payment for months.
• The 1099 Model: Many successful roofing businesses use a subcontractor model for labor to keep their overhead low, but this requires hiring the right people to ensure quality doesn't slip.

Strategies That Can Help Roofing Companies Grow

If you want to make as much as the top 1% of owners, you need to streamline your operations and manage costs. Here are strategies that can help:

1. Implement a CRM: Using the best roofing CRMs helps roofing companies track leads and retain customers.
2. Use Modern Estimation Tools: Tools like Roofr allow you to provide instant quotes, which helps you stay busy and win more roofing projects.
3. Optimize Your Overhead: To keep your overhead low, only invest in tools and equipment that provide a clear ROI.
4. Leverage Tech Tools: From automation to aerial measurements, use tech tools to save time and money.

Is Owning a Roofing Company Profitable?

Yes, owning a roofing company is highly profitable if you manage your pricing strategy effectively. Many owners expect to make a six-figure income within their first few years. According to industry data and platforms like Roofr, the demand for roofers is consistent because new roofs and replacement services are necessities.

For a local business, staying ahead of the competition means staying on top of lead generation. While smaller companies might struggle with cash flow, those that fast-track their growth through automation often see a higher net profit.

How to Start a Roofing Business and Stay Profitable

You need a solid business plan to start a roofing business. You don't necessarily need decades of roofing experience, but you do need to understand the right roofing techniques and how to streamline the sales process.

Here's how you start a successful roofing business:

• Get Licensed and Insured: Obtain your roofing contractor license and professional liability insurance.
• Invest in the Right Tools: From trucks to nail guns, having the right tools is vital.
• Leverage Technology: Use Roofr for measurements and automation to save time and money.
• Stay Informed: Read industry publications and stay up to date with the latest shingle technologies to remain the best roofing provider in your area.

By focusing on profitability rather than just volume, new businesses can thrive. Whether you are performing commercial work or residential roofing, the roofing market offers a clear path to success.

FAQs About Roofing Profits

How much does a roofer business owner make per year?

The average business owner of an established roofing business makes between $100,000 and $300,000 annually. However, owners of large commercial roofing operations can exceed $1 million in personal take-home pay.

What is the profit margin for roofing companies?

The average profit margin for roofing ranges from 20% to 40% (gross) and 5% to 15% (net). Business profitable operations focus on high-margin replacement jobs and minimizing waste in roofing materials.

Is it hard to start a roofing company?

While the barrier to entry is moderate, you need a strong business plan, the right tools (like nail guns and safety gear), and professional liability insurance. Success requires hiring the right people and using tech tools like Roofr to streamline measurements.

Which is more profitable: residential or commercial roofing?

Commercial work often has a higher net profit per project but requires more capital and specialized roofing experience. A residential roofing business offers higher volume and faster payment cycles from the homeowner. Both residential and commercial roofing are profitable if approached in the right way.

Bottom Line on Roofing Business Owner Revenue

An average roofing business owner earns between $70,000 and $250,000. Large-scale company owners make over $300,000 per year. The profitability of the business varies significantly based on the way you manage your company, labor, and marketing.

We help you take the first step towards your dream roofing business. Join our roofing exam prep course and get your license. Build connections and trust in the industry to kickstart your career.